The relationship between industrial transfer parks and county economic growth: Evidence from Guangdong Province, China

Abstract

The Chinese government has taken the initiative to establish industrial transfer parks (ITPs), which are essential for the rational spatial allocation of production factors and for optimizing and upgrading the industrial structures to promote coordinated regional development. However, the literature does not offer a definitive conclusion on the relationship between the establishment of ITPs and the impacts of regional economic development. Focusing on Guangdong Province, this study analyzed panel data obtained from 57 counties between 2002 and 2019 and applied the staggered difference-in-differences (DID) method to systematically test the net effect of ITPs on county economic development. The results showed that (1) ITPs have induced a 1.70% increase in economic development across the county; (2) ITPs have impacted economic growth in eastern Guangdong, followed by western Guangdong, while no significant impacts were observed in the northern mountainous areas. (3) Additionally, as ITPs have been approved for establishment over time, the impact on economic development has increased. (4) The establishment of ITPs drives the evolution of county economic development through the three paths of industrial agglomeration, factor moderating, and administrative intervention. These findings can provide a reference for industrial transfer and regional coordinated development strategies. Emphasizing the active role of local governments in guiding the market is essential. Meanwhile, it is necessary to avoid excessive administrative intervention, areas undertaking industrial transfers should prioritize improving their industrial infrastructure support capabilities and establishing a long-term sustainable development mechanism for industrial transfer, integration, and revitalization.